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Cost of Refinancing a Mortgage in Edmonton: Fees and Expenses Explained
April 28, 2025 | Posted by: Roar Solutions
Refinancing your mortgage in Edmonton can be a strategic move to lower your interest rate, consolidate debt, or access your home equity, but it’s not without its costs. Whether you're a homeowner looking to refinance for the first time or you're weighing your options for the second or third time, it's important to understand the various fees and expenses involved.
This article breaks down the cost of refinancing a mortgage in Edmonton, helping you plan ahead and make an informed financial decision.
Why Refinance a Mortgage in Edmonton?
Refinancing is a powerful financial tool for many Edmonton homeowners. Here’s why you might consider it:
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Secure a lower interest rate
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Convert from variable to fixed rate (or vice versa)
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Access home equity for renovations or investments
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Consolidate high-interest debts
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Change your mortgage term or lender
While the benefits are clear, many forget to factor in the refinancing costs in Alberta, which can impact whether it’s the right decision financially.
Typical Mortgage Refinancing Costs in Edmonton
Let’s take a closer look at the fees and expenses involved in refinancing a mortgage in Edmonton:
1. Mortgage Penalty Fees
If you're breaking your current mortgage before its term ends, your lender will likely charge a prepayment penalty. This fee can vary based on your mortgage type:
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Fixed-rate mortgage: Usually the greater of three months’ interest or the Interest Rate Differential (IRD)
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Variable-rate mortgage: Typically, three months’ interest
2. Legal Fees
Refinancing requires a lawyer or notary to update your mortgage registration. Expect to pay $700 to $1,200 in legal fees in Edmonton, depending on the complexity of your refinance.
3. Appraisal Fee
Lenders often require a new home appraisal to determine the current value of your property. This helps them calculate your loan-to-value (LTV) ratio. Appraisal fees in Edmonton usually range from $300 to $500.
4. Title Insurance
Some lenders require title insurance as an alternative to a new property survey. This one-time cost typically ranges from $250 to $400.
5. Discharge Fees
Your existing lender may charge a discharge fee (often called a mortgage release fee), usually between $200 and $400 in Alberta.
6. Home Equity Access Costs (If Applicable)
If your refinance involves pulling equity out of your home, you may want to read more about how much you can borrow and what that process looks like. We’ve covered this in detail here:
How Much Can You Borrow from Home Equity Bank in Edmonton?
Optional Costs to Consider
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Mortgage broker fees (in rare cases, typically paid by the lender in Alberta)
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CMHC insurance (if your refinance pushes your mortgage above 80% LTV)
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Property tax adjustments
Is Refinancing Worth It?
To determine if refinancing is right for you, weigh the total cost against your potential savings or goals. For example:
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Are you saving enough on interest to justify the fees?
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Will the new mortgage better suit your financial future?
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Are you using your home equity productively?
Refinancing makes the most sense when the financial gains outweigh the upfront costs within a few years.
Speak to a Trusted Edmonton Mortgage Broker
Refinancing doesn’t need to be overwhelming. Working with a professional ensures you're not overpaying in fees or missing out on opportunities.
Connect with Steven Boodoo, a trusted mortgage broker in Edmonton, to get personalized advice and a detailed cost breakdown tailored to your situation.
Contact Steven today for a free consultation and take the first step toward a smarter mortgage strategy.
